There exist the problems of short range measurement, noise interference, and influence of nonlinear frequency modulation by using frequency modulation continuous wave (FMCW) laser ranging technique based on beat frequency algorithm. In order to solve these problems under the same institutional condition, the ranging method based on matched filtering was proposed in this paper. Novel method modifies The optical path was modified, such as adding signal reversal unit and signal conjugate unit, replacing the mixer with a convolver. At same time, the system response and transmission waveform matching was satisfied, and the simulation experiment was carried out in this paper. The result of simulation show that ranging by matched filtering can get twice detection distance and 9.5 dB higher signal-to-noise ratio(SNR) than ranging by beat frequency algorithm, and spectral resolution from matched filtering were higher than that from beat frequency algorithm in the condition of nonlinear frequency modulation error were 19.8 MHz, 198 MHz and 396 MHz, reveal the ability of reduce the influence of nonlinear frequency modulation. This study can provide technical guidance and new ideas for researchers in this field.